CITIC Securities says China’s pharmaceutical sector combines essential demand
with high certainty, supported by continued strong growth in domestic biopharma
financing. Starting Q3, core pipelines of domestic innovative drugs are expected
to produce major data readouts that could act as catalysts and accelerate value
realization for assets with global potential. Policy reforms are gradually
shifting pricing back toward a clinical-value and demand-driven market pricing
mechanism, creating a more stable domestic market environment and a longer-term
supportive growth backdrop. CITIC recommends focusing on healthcare industry
investment opportunities, citing higher conviction for both alpha and beta from
the sector over the next 3–5 years.
